An Example of A Simple Factory Highlight Report from SAOS

A few words from a factory visit make customer feel comfortable.  We know this well and every visit we write something we observed for internal discussion and/or to report customer.  Below is a fresh example from our yesterday’s visit to a plastic injection molder company for a bowl and cookie stamp project.

Here is the brief output:

Factory general overview: Good processes in place, clean and well maintained, assessed by BV (quality based). However this is more a low end supplier (so low cost) with old injection machines. Workload was very low during the visit, about 30%. They have a second factory, which we also visited, but totally empty factory (no worker).

Financial situation: They informed an EBIT of 10%, which I would barely believe assuming the current workload, including lot of empty space. I think this company is declining and financial assessment would be needed.

– Social audit: They didn’t check carefully enough our social requirements, they will read it again and confirm their acceptance.

– The color printing process on requested products 3 and 4 is thermal printing and happens to work only on flat surfaces. So doesn’t work for 3 and 4 which are not flat and they didn’t realize that before. Besides, the process is subcontracted, because their injection capability is quite basic.

– Alternatively, products 3 and 4 can be done in Melamine, but will be subcontracted anyway (trading process).

– AQL: They were not sure about the meaning of this standard even that they work for Japanese suppliers, but they are confident they can achieve it, based on samples approved by end customer. Some more focus will be needed on the inspection process during first batch.

– Samples request, 2 options: Either using real samples, so cost will be the mould cost + sample cost (very expensive), or just the shape in a different material and cost will be about 100€ each (handmade).


Factory workshop

By Ben Chu, SAOS CEO


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